Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Paramount (PSKY)
Market Cap: $12.36 billion
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Why Do We Think PSKY Will Underperform?
- Sizable revenue base leads to growth challenges as its 3.2% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.9 percentage points
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Paramount’s stock price of $11.26 implies a valuation ratio of 13x forward P/E. If you’re considering PSKY for your portfolio, see our FREE research report to learn more.
International Paper (IP)
Market Cap: $20.59 billion
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Is IP Risky?
- Annual sales growth of 3.9% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- 7.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $38.83 per share, International Paper trades at 23.1x forward P/E. Check out our free in-depth research report to learn more about why IP doesn’t pass our bar.
Regions Financial (RF)
Market Cap: $24.7 billion
Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE:RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.
Why Are We Cautious About RF?
- Annual net interest income growth of 5.1% over the last five years was below our standards for the banking sector
- 38.2 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.2% annually
Regions Financial is trading at $28.24 per share, or 1.3x forward P/B. If you’re considering RF for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
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